Sony Music Sales Up, Income Down
August 5, 2016 at 12:32 PM (PT)
SONY MUSIC ENTERTAINMENT posted an 8.2% increase in sales in the second quarter ending JUNE 30th of this year, to $1.374 billion from $1.27 billion during the same period a year ago. The group's operating income dropped from $310 million in Q2 last year to $155 million in Q2 2016.
SONY attributed the increase to growth in streaming and its visual media and platforms. The operating income was tied to "re-measurement of SME's equity interest in THE ORCHARD." Subtracting the latter's $151 million boost to operating income from the prior year's operating income leaves it with $159 million -- meaning its $155 million in operating income performance this year represents a slight decline over last year at the same period.
SONY reported that overall digital revenues increased to $461 million up 10%. Download revenue dropped to $162 million or 18.5% of revenue. Streaming accounted for $299 million, up 38.4% from last year's $216 million.
The company’s recorded music operations -- SMI and SONY MUSIC JAPAN -- saw revenue increase slightly, to $874.5 million from $871 million. Music publishing revenue fell 12.6% to $152 million from $174 million.
SONY's physical sales accounted for $281 million, 32.1% of total revenue, down $324 million, or 37.2% of total revenue, from 2015
Other music revenue (synch licensing payments and neighboring rights royalty payments) totaled $131.7 million or 15.1% of total revenue, up slightly from $127 million, or 14.6%.
SONY CORP. revenues overall fell to $15.66 billion from $17.63 billion during the quarter, while net income fell to $205 million from $803 million.